15. COMMITMENTS

Operating Leases:

As of December 31, 2017, the Company leases office space for corporate offices, a distribution facility in Texas, a raw materials warehouse in Maryland under leasing terms ranging from 5 to 9 years. The Company has 4 previously corporate-operated MWCC Centers that were sold to franchises and subleased which expire within 2 years.

Future minimum rental and lease payments required under non-cancelable original lease terms in excess of one year as of December 31, 2017 (in thousands):



2018	$	1,023
2019		1,238
2020		1,243
2021		1,186
2022		1,149
Thereafter		3,736
Total minimum lease payments	$	9,575

Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $0.1 million due under future non-cancelable subleases.

The following table is a summary of the Company’s rent expense for the years ended December 31, 2017, 2016 and 2015 (in thousands):


	2017		2016		2015

Continuing operations	$	1,842	$	1,276	$	1,506
Discontinued operations		-		-		(1,002)
	$	1,842	$	1,276	$	504

For the year ended December 31, 2015, the positive impact to rent expense was due to lease termination agreements that resulted in the reversal of rent obligations estimates that were expensed in 2014.

Equipment lease expense for continuing operations for the years ended December 31, 2017, 2016, and 2015 was $0.2 million, $0.7 million, and $1.0 million, respectively.

Unconditional purchase obligations:

At December 31, 2017, the Company had $8.5 million in unconditional purchase obligations for inventory.